Rambus Q4 Loss Narrows, Guides 2014 Revenues Above View

(RTTNews) - Chip interface technology developer Rambus, Inc. (RMBS) reported Monday a loss for the fourth quarter that narrowed from last year, primarily reflecting a 28 percent growth in revenues. The company also provided revenue guidance for the full-year 2014, above Street view.

The Sunnyvale, California-based world's premier technology licensing company reported a net loss of $9.78 million or $0.09 per share for the fourth quarter, narrower than $16.13 million or $0.14 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $16.49 million or $0.14 per share, compared to $17.93 million or $0.15 per share in the year-ago quarter.

On average, three analysts' polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimate typically exclude one-time items.

Revenue for the quarter increased 28 percent to $73.42 million from $57.44 million in the same quarter last year, primarily due to new license agreements signed with SK Hynix, Micron Technology, ST Microelectronics and LSI Corporation during 2013. Three Wall Street analysts had a consensus revenue estimate of $73.33 million for the quarter.

Revenues from royalties was $69.87 million for the quarter, while contract revenues were $3.56 million.

Customer licensing income in the quarter grew 20 percent to $73.9 million, aided by new licensing agreements.

Operating income for the quarter was $6.21 million, compared to loss of $4.03 million recorded in the same quarter last year. Total operating costs and expenses grew 5 percent to $67.2 million from the prior year's $61.5 million, primarily due to higher cost of sales related to lighting products, restructuring charges and impairment of long-lived assets.

For fiscal 2013, the company reported a net loss of $33.75 million or $0.30 per share, sharply narrower than $134.34 million or $1.21 per share in the prior year.

Excluding items, adjusted net income for the year was $54.42 million or $0.47 per share, compared to $19.88 million or $0.17 per share in the year ago.

Revenue for the full year dropped 43 percent to $264.11 million from $132.39 million in the previous year.

Street was looking for full-year 2013 loss of $0.19 per share on annual revenues of $271.40 million.

Looking ahead to fiscal 2014, the company expects customer licensing income and revenue to be between $295 million and $305 million. Analysts expect the company to report full-year 2014 revenues of $287.53 million.

RMBS closed Monday's regular trading session at $9.58, up $0.59 or 6.56% on a volume of 2.70 million shares.